Malaysia Tax Calculator (2026) — Add or Reverse Tax
Malaysia charges a 10% SST, a 24% corporate tax rate, and a 30% top personal income tax rate.
How to use this calculator:
- Purchase mode — add SST to a pre-tax price, or reverse a tax-included total to find the pre-tax price and exact tax paid.
- Profit / salary modes — enter an amount to see the corporate tax owed or a ceiling estimate of personal tax at the top marginal rate.
Understanding Malaysia's Tax System
Malaysia levies SST at a standard rate of 10%. Its statutory corporate income tax rate is 24%, above the 23.58% global average. The top personal income tax rate is 30%.
Sales tax 10% / service tax 8% (SST) rather than a credit-invoice VAT.
Region
Asia
SST rate
10%
vs. world average corporate rate
+0.4 points above the 23.58% global average
Why Reverse Tax Calculation Matters
Receipts and invoices usually show only the tax-included total, so separating revenue from tax collected — for bookkeeping or cross-border comparisons — means working backward from that total. Dividing by (1 + rate) isn't the same as subtracting the rate, which is why selecting "Reverse" in the purchase-mode calculator above handles it exactly.
History & Context
Malaysia ran a Sales and Service Tax (SST) from 1972 until replacing it with a broader GST in 2015. Following a historic 2018 election that ended six decades of single-party rule, the new government reduced GST to 0% within weeks of taking office and formally repealed it, reinstating a modified SST from September 1, 2018 — a rare example of a country reversing a major VAT/GST adoption entirely.
The GST-to-SST reversal was explicitly framed as cost-of-living relief, since GST had been widely blamed by the public for a spike in living costs since its 2015 introduction — a reminder that consumption tax design carries real political risk distinct from its revenue-raising logic.
Business Use Case
A Malaysian manufacturer that had adapted its systems to GST's broad multi-stage input-credit model in 2015 had to readapt within a few years to SST's narrower, single-stage structure (10% or 5% sales tax on goods, 6% or 8% service tax) — two major tax-system transitions within less than a decade.
Real-World Examples
SST on a purchase
A RM1,000.00 purchase in Malaysia at 10%:
- Tax: RM1,000.00 × 10% = RM100.00
- Total: RM1,100.00
Corporate tax on profit
RM1,000.00 in company profit in Malaysia at 24%:
- Tax: RM1,000.00 × 24% = RM240.00
- After-tax profit: RM760.00
Extracting SST from a receipt total (reverse)
A receipt shows a RM1,499.00 tax-included total in Malaysia at 10%:
- Pre-tax price: RM1,499.00 ÷ (1 + 10%) = RM1,362.73
- SST: RM1,499.00 − RM1,362.73 = RM136.27
Frequently Asked Questions — Malaysia Taxes
What is the SST rate in Malaysia?▾
What is the corporate tax rate in Malaysia?▾
What is the top personal income tax rate in Malaysia?▾
How is tax calculated on a purchase in Malaysia?▾
How do I reverse Malaysia's SST to find the price before tax?▾
References & Sources
Methodology: headline VAT/GST and corporate rates are sourced from the OECD Corporate Income Tax Rates Database and Tax Foundation's global rate tables for 2026; figures reflect the national statutory rate and do not include sub-national, sector-specific, or temporary rate variations unless noted in the text above. Tax rates change through national budgets — always confirm current figures with a qualified local tax advisor before making business or relocation decisions.
Rates last verified for 2026. This tool is for estimation and educational purposes only and is not tax, legal, or accounting advice.
Jordan Hayes
Verified AuthorPersonal Finance Content Strategist
Jordan is a personal finance content strategist with 9+ years writing about mortgages, retirement, tax strategy, and budgeting. Every guide is cross-referenced with IRS publications, Federal Reserve data, and CFPB guidance to make complex calculations accessible. Editor at CalculatorApp.me.
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Tax-rate data, review & limitations
Jurisdiction: Malaysia. Effective date: January 1, 2026. Reviewed by CalculatorApp.me editorial staff on July 26, 2026; next scheduled review: October 26, 2026.
Rates are reference estimates, not tax advice. Local rules, exemptions, filing status, and effective dates can change the amount due.
Primary sources
- OECD Tax Database
- Tax Foundation corporate-tax and VAT datasets
- Applicable national revenue authority guidance